Glad you're digging the game!
The beehive definitely seems bugged. There was a recent fix that should have fixed this in the latest update. If you're on the latest version, try picking the hive up and placing it again. If the bug persists, please email a copy of your save folder to support@illadvisedrecords.com and I can take a look and fix the bug.
There is no set number of encounters for the watcher. It triggers randomly as you walk around town (though it is not guaranteed to appear, especially if you are not walking around town much).